14 Tax Credits and Deductions That May Disappear

14 Tax Credits and Deductions That May Disappear

A lot of time, money and energy was spent predicting the outcome of the presidential election. But prediction season’s not over yet – a lot of next year’s tax policy remains unclear. MarketWatch takes a stab at how some personal tax issues may be affected. Here’s a few…

Earned Income Tax Credit

Legislation enacted in previous years increased the earned-income credit for families with three or more qualifying children and allowed married joint-filing couples to earn more without having their credits reduced. These changes, which help lower-income families, are scheduled to expire at year-end.

Prediction: The current more-generous rules will be extended through at least 2013.

Higher-Education Tuition Deduction

This write-off, which can amount to as much as $4,000 or $2,000 for higher-income folks, expired at the end of 2011.

Prediction: The deduction will be retroactively restored for 2012 and probably extended through at least 2013.

$500 Energy-Efficient Home Improvement Credit

For 2011, taxpayers could claim a tax credit of up to $500 for certain energy-saving improvements to a principal residence. This break expired at the end of 2011.

Prediction: This one is probably gone for good.

There’s nearly a dozen more predictions over at MarketWatch, and if you’re ready to start planning taxes, check out the links below. (We’ll have a lot more to say during tax season when things are clearer.)

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